Oil prices fall sharply on hopes for Middle East conflict resolution

Oil prices began the week with a sharp decline. The suspension of US strikes on Iran raised hopes for a diplomatic solution to the conflict in the Middle East, Reuters reported. At around 00:30 CEST, North Sea Brent crude was down about 5.8 percent, trading near 91.2 dollars per barrel. US light crude West Texas Intermediate (WTI) was down about 5.6 percent, at around 84.3 dollars per barrel.

CBS News reported over the weekend, citing informed sources in the region, that the United States and Iran had suspended air strikes against each other in the Middle East while an Omani delegation held talks in Tehran on reopening the Strait of Hormuz. It is a key maritime route for oil exports from countries around the Persian Gulf.

During the past week, Brent crude prices rose above the psychologically important threshold of 100 dollars per barrel for the first time since May, amid the ongoing conflict in the Middle East. Oil prices fell sharply on Friday after reports that China was seeking to revive peace talks between the United States and Iran, but Brent still gained almost ten percent over the past week.

Oil prices in dollars per barrel (about 159 litres)